This blog post targets employers who sponsor retirement or welfare plans and are concerned about their responsibility to stay informed and track the status of the Department of Labor’s “Fiduciary Rule.” This issue is more subjective than those about which I normally write, but with so many regulatory obligations, I hope you agree that it is worthwhile to decide what to prioritize. Before going further, I warn any financial advisors seeking additional insights into the ... Keep Reading »
District Court Doesn’t Apply Economic Substance Doctrine to Transaction Where Taxpayer’s Sole Motive Was Tax Avoidance
Judge Schiltz of the U.S. District Court of Minnesota recently issued an opinion in Wells Fargo & Co. v. United States, that qualifies as a key development in the law of economic substance. Taxpayers have battled the government for decades over the precise contours of the judicially-created doctrine often advanced by the government and employed by the courts to deny tax benefits of particular transactions that comply with the strict terms of the Tax Code, but which ... Keep Reading »
New Florida Law Addresses Time for Filing Corporate Tax Returns
On June 2, Florida Governor Rick Scott signed into law House Bill 7099, regarding the corporate income tax. The bill amends Section 220.222, Florida Statutes, which governs the time for filing tax returns. Section 220.222(a) and (b) authorize extensions to file tax returns to taxpayers provided they meet certain of the statute’s requirements. The bill provides that, for taxable years beginning before January 1, 2026, the extension granted to taxpayers with a taxable year ... Keep Reading »
Raffles and other Games of Chance
Fundraising is a core component of most tax exempt organizations’ revenue generation efforts. Raffles and similar games of chance are often employed by tax exempt organizations as fundraising tools. However, if a tax exempt organization is going to conduct games of chance – including raffles – in any state, it needs to consult that state’s laws to ensure it is not violating the state’s gaming laws. Many tax exempt organizations are unaware ... Keep Reading »
Sharing Expenses
The economic climate of the last few years has caused tax exempt organizations to deliver their services and manage their expenses with greater creativity and efficiency. One way to keep costs down is to share employees, office space, or administrative resources with another organization, whether nonprofit or for-profit. Obviously, if the other organization is for-profit, the issue of private benefit arises (and possibly the issue of private inurement if the for-profit ... Keep Reading »